Wellsville responds to state audit

Saturday

Jan 20, 2018 at 9:31 PMJan 20, 2018 at 9:31 PM

WELLSVILLE — Wellsville Central School recently received a report card of its own from the office of New York State Comptroller Thomas DiNapoli.

DiNapoli’s office performed an audit reviewing the District’s financial management practices from July 1, 2013 through April 19, 2017. The Wellsville Central School District operates two schools with approximately 1,300 students, drawing from the towns of Alma, Andover, Independence, Scio, Wellsville and Willing. General fund budgeted appropriations for the 2016-17 fiscal year totaled approximately $29 million.

The highlight’s from the audit, followed by Wellsville’s response —

Key findings

— Although the Board appropriated fund balance each year to help finance the budget, none of it was needed because the Board and District officials overestimated appropriations each year.

— The District’s unrestricted fund balance has exceeded the statutory limit for the past three fiscal years by amounts ranging from $1.5 million to nearly $3 million.

— District officials have allowed the unemployment reserve balance to accumulate to an excessive level and have not used funds from the retirement contribution reserve as budgeted.

Key recommendations

— Ensure that budgets include realistic estimates of revenues and appropriations to avoid levying property taxes at a level greater than needed and that estimates in the annual budget for the planned use of fund balance are accurate and reasonable.

— Maintain unrestricted fund balance within the statutory limit, and develop a plan to reduce unrestricted fund balance in a manner that benefits District residents.

— Ensure that reserve fund balances are maintained at reasonable levels and used as budgeted, and take appropriate action, in accordance with applicable statutes and Board policy, to reduce any reserves with excess funds.

Wellsville response

Wellsville Superintendent David Foster penned a response letter to Jeffrey Mazula, Chief Examiner in the Division of Local Government and School Accountability.

Foster noted that the District already has or will soon be implementing the changes recommended by the audit.

“We believe the draft audit report recommendations encouraging the District to review and further develop our procedures and plans for developing budgets and using reserves were appropriate and are consistent with the changes which we have either already made or are planning to make in the near future,” Foster wrote.

“Once the final audit report is issued, the District will follow-up with an analysis and specific responses in a Corrective Action Plan (CAP) within 90 days. The CAP will be filed with the Office of the State Comptroller and New York State Education Department. In addition, the CAP will be made available for public inspection.”

Foster went to note the board is committed to providing top-notch education while maintaining efficient, responsible spending practices in the District.

“The Board of Education and Administration are always eager to consider suggestions and ideas to improve the financial operations of our District, especially in light of our strong commitment to protect both the short-term and the long-term fiscal health of the District and, at the same time, ensure that our residents continue to receive the same high level of efficiency and predictability from the District that they have enjoyed and benefited from in the past, and justifiably, expect to receive in the future,” Foster said.

“It has been and will continue to be a top priority of this District to maintain and improve upon our record of providing a strong education for our students in the most cost effective manner possible. The Board of Education and Administration are committed to ensuring the District's financial operations are conducted with the highest level of integrity and that the interest of the District's taxpayers are properly protected.”

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